Current Account Records A Huge Surplus of Over $800 Million in July-Aug 2020

[The Accountant]

this temporary due to covid related low economic acitivty
i expect this to return into negative again

however, a negative 1-2% CAD is nothing to worry about

its a problem when goes upto 3-4+ %(or is projected to go up with no reserves as cushion , as economy is always forward looking)

summary of our problem is that govt "print notes" in last 18 months and drops interest rates to create fiscal space for heavy spending. The result is obvious low inflation, high imports, high CAD, high growth(which the govts sell as a success) though this inevitably causes a burst (fake money) which cancels al the growth we achieved

this tried and tested method has made PMLN & PPPP popular, so why wouldn't they do it again, they are our drug sellers and Pakistanis are their junkies

I am not sure that CAD is again going negative by such a big margin. May be it happen in short run but in long term and medium term lot of import substitution projects has started. For example cultivation of palm oil, invenstment in Dams to increase agriculture and local energy projects, and facilitation of exports.

Let's see how things move forward. but you should remember that CAD even in Jan and Feb was very low.

 

[volatile]

no brother, the current account deficit was on continuous trajectory of decline right after PMLN left and from average 1.7 billion dollar a month fell to just 300 million a month even before lock downs and corona.

Oh bhai our average remains the same only factor was Imports due to CPEC related projects

 

[volatile]

The exports in July were up by 30% if I am not wrong and down in August by 16% I am told which is partially due to floods in Karachi.

I expect them to jump back on positive side this september. Lets see.

please share the link .exports in volume increased not in net dollar terms

 

[volatile]

met a sales guy yesterday. he was in saudi arabia for 15years , got laid BEFORE covid and is now searching for job . countless others like him who have returned from ME

ME is totally going to crash in next 2-3 years unless we see 120 USD oil prices ( highly unlikely)

if remittance is our hope for forex, god help us

you are correct with lowering crude prices the ME is turmoil ,many friends and Ex colleagues are coming back

 

[Rafael]

please share the link .exports in volume increased not in net dollar terms

Exports increased by 5.80pc in July

ISLAMABAD-Pakistan’s exports increased by 5.80 percent in July 2020 as compared to the same month of last year. On the import side, a decline of 4.2pc,

nation.com.pk

Sorry for the error earlier, in terms of value exports rose by 5.80% in July 2020 and in terms of volume it may be even more.

 

[Patriot forever]

Oh bhai our average remains the same only factor was Imports due to CPEC related projects

This propaganda has been busted many times on this forum with facts and figures.

 

[volatile]

This propaganda has been busted many times on this forum with facts and figures.

who by you ?

 

[volatile]

Exports increased by 5.80pc in July

ISLAMABAD-Pakistan’s exports increased by 5.80 percent in July 2020 as compared to the same month of last year. On the import side, a decline of 4.2pc,

nation.com.pk

Sorry for the error earlier, in terms of value exports rose by 5.80% in July 2020 and in terms of volume it may be even more.

lets hope the trend continues

 

[ziaulislam]

Oh bhai our average remains the same only factor was Imports due to CPEC related projects

NO sir..diapers import were also all time high

 

[ziaulislam]

who by you ?

Just go to sbp website and look at import by item

I have posted those here MULTIPLE TIMEs to show that imports increase was not due to CPEC but food and consumption material as local farmers were outbidded by foreigners

 

[ziaulislam]

met a sales guy yesterday. he was in saudi arabia for 15years , got laid BEFORE covid and is now searching for job . countless others like him who have returned from ME

ME is totally going to crash in next 2-3 years unless we see 120 USD oil prices ( highly unlikely)

if remittance is our hope for forex, god help us

However some countries dont depend upon oil
Like qatar and UAE..
Others have huge cash reserve..
So if we play it smart we can still keep remittances high

 

[Patriot forever]

who by you ?

Nope your delusional propaganda has been confronted by facts and figures multiple times bro. You just wake up next morning and it's all over again. Can't help someone with Alziemers.

2018 data.

China's exports to Pakistan amounted to
$14.6 billion or 24.3% of its overall imports.

1. Electronic equipment: $3.1 billion
2. Machinery: $3.1 billion
3. Iron and steel: $1.1 billion
4. Organic chemicals: $866.9 million
5. Fertilizers: $689.7 million
6. Man-made filaments: $538.9 million
7. Iron or steel products: $531.7 million
8. Plastics: $481.6 million
9. Vehicles: $418 million
10. Man-made staple fibers: $266.6 million'

Electronic equipment also includes consumer goods such as Cell phones, TV, other appliances which makes up a considerable portion in this category.

 

[Syed1.]

Well that's true..

Its probably even more than 80 percent

The undocumented economy is the reason why every few years Pakistan comes near the cliff of default but never jumps over, much to the bafflement of economic experts around the world. It is sort of our safety net.


However, the undocumented economy also doesn't allow us to realize our true economic potential and unleash rapid economic growth. So it is a chicken and egg situation.

 

[The Accountant]

Oh bhai our average remains the same only factor was Imports due to CPEC related projects

I proved u wrong multiple times please dont go to that again. Import of capital items was 6 billion only. So stop spreading lies

 

[ziaulislam]

I proved u wrong multiple times please dont go to that again. Import of capital items was 6 billion only. So stop spreading lies

its called rationalization...he wantss to vote based upon religion race and bradery like any other pakistani but is rationalizing it with other stuff

so no matter what you say it wont change his opinion..otherwise nawaz sharif has tried his bets in last 40 years to bankrupt pakistan